00:01
Hello, in this video, i will be answering the, what is the amount of cash received by the seller with the following information? so, let's go over some terms.
00:10
So, with the term, with the term one out of ten, which is this term right here, it's referring to the buyer, the buyer pays a seller within 10 days.
00:26
The buyer will receive a 1 % sales discount.
00:29
And then this little one refers to the process when the payment must be paid within a certain number of days of the month according to the agreement.
00:41
So we're going to use our merchandise and our fob to solve for the amount of cash for each.
00:50
So we are going, our merchandise price is our $1 ,200, and our sales return is $500.
00:59
So from here we know the total sales is equal to merchandise price minus the sales return.
01:20
So that is going to be our $1 ,200 minus our 500, which equals $11 ,500.
01:35
So from here since the invoice is paid within the discount price and the discount is 1%.
01:43
We're going to multiply this by 0 .01 because sales discount is total sales times the discount price...